Banks increase US dollar borrowings on interbank market

09-Nov-2019 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

The State Bank of Vietnam (SBV) has released information on banking activities in the last week of October (October 28th to November 1st 2019).

Specifically, the dong mobilisation interest rates in the week were popular at 0.2 percent to one percent per annum for non-term deposits and deposits with terms of less than one month, 4.5 percent5.5 percent per annum for deposits with terms from one month to less than six months, 5.5 percent to seven percent per annum for deposits with terms from six months to less than 12 months, and 6.6%-7.5 percent per annum for deposits with terms from 12 months or more.

The dong lending interest rates were ranging at six to nine percent per annum on short terms, nine percent to 11 percent per annum on medium and long terms.

For US dollar lending, the interest rates were around three to six percent per annum, in which short-term rates were popular at three percent to 4.7 percent per annum, and medium and long-term rates were popular at 4.5 percent to six percent per annum.

According to reports of credit institutions and foreign bank branches through the statistical reporting system, the turnover of the dong transactions on interbank market in the period reached approximately 273.143 trillion dong, equivalent to an average of 54.629 trillion dong per day, down by 4.449 trillion dong per day compared to the week of October 21st to 25th 2019. The turnover of US dollar transactions converted into dong during the last week reached about 162.636 trillion dong, equivalent to an average of 32.527 trillion dong per day, up by 3.161 trillion dong per day compared to the week before.

Regarding terms, the dong transactions mainly focused on overnight term (accounting for 66 percent of the total transaction value) and one-week (accounting for 16 percent of the total transaction value). For US dollar transactions, overnight and one-week terms recorded the largest transaction value with proportions reaching respectively 75 percent and 14%.

For the transactions in dong, compared to the previous week, the interbank average rates slightly increased across all terms. Specifically, the overnight, one-week, and one-month average interest rates increased by respectively 0.14%, 0.26%, and 0.19 percent per annum to 1.82%, 2.19 percent and 2.7 percent per annum, respectively.

Meanwhile, for US dollar transactions, the average interbank rates in the week tended to slightly decline compared to the week before, across most of the terms. Specifically, the average overnight, one-week and one-month rates fell by respectively 0.04%, 0.05 percent and 0.06 percent to 1.82%, 1.92 percent and 1.97 percent per annum.


Category: Finance, Vietnam

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